Inter IKEA Group announces total revenues of EUR 26.3 billion for financial year 2025 (FY25) compared to EUR 26.5 billion in FY24. Sales volumes are up while gross margin is back to normal levels, following the continued effect of wholesale price decreases in FY24. This planned development supports the IKEA affordability ambitions.
After 20 years at IKEA – including leading the IKEA Franchisor from 2018 and CEO of Inter IKEA Group since 2020 – Jon Abrahamsson Ring is handing over to Jakub Jankowski, currently Managing Director for IKEA Industry. Jakub will step into the role as CEO of Inter IKEA Group on 1 January 2026.
In FY25, the Inter IKEA Group tax charge was EUR 415 million – equal to 21.3% of pre-tax income – compared to EUR 466 million (17.5%) in FY24. The effective tax rate increased by 3.8% points compared to FY24.
Our effective tax rate is primarily driven by the tax rates in the jurisdictions where the majority of our business is conducted, i.e. the Netherlands, Sweden and Switzerland, and the financial performance of the Inter IKEA Group companies in these jurisdictions.
The increase of the effective tax rate in FY25 is mainly due to decreased profitability in our Supply business compared to previous year as a result of increased sourcing costs, including tariffs. As our Supply business is led by IKEA Supply AG in Switzerland, a smaller share of the total profit of Inter IKEA Group was subject to the relatively lower Swiss tax rate.
As of FY25 Inter IKEA Group is subject to the minimum tax rate of 15% for each of the jurisdictions where it operates. However, this has not had a big impact as Inter IKEA Group was already subject to a tax rate higher than 15% in most countries.
The points described above can also be seen in the chart below which reconciles Inter IKEA Group’s effective tax rate for FY25 with the Dutch corporate tax rate (25.8%).
| Result before tax (as reported for FY25) | 1,953 | |
|---|---|---|
| Tax expense if the nominal tax rate in the Netherlands (25.8%) had been applicable | 504 | 25.8% |
| Tax effect of: | ||
| Other applicable tax rates abroad | -116 | -5.9% |
| Exempt income | -2 | -0.1% |
| Non-deductible expenses | 4 | 0.2% |
| (De)recognition of tax losses | -1 | 0.0% |
| Changes in tax rates | -1 | 0.0% |
| Non-reclaimable withholding tax | 10 | 0.5% |
| Pillar 2 | 11 | 0.6% |
| Other | 6 | 0.2% |
| Tax expense (as reported for FY25) | 415 | 21.3% |